Hi i've been having the exact same problems too. I'm currently running 32 bit XP wishing to install 64 bit Win 7. The iso i burned onto my dvd gives me nothing but a flashing cursor for a few moments before it switches to my second boot priority. Same problems with my USB, extracted iso onto that and tried booting but same errors. Same errors trying to complete the boot process.
I'm currently toying with a particular idea right now so if i have any success in that i'll let you know but i'm pretty much in the same boat right now.